Over the years, it has become increasingly difficult for medical practices to get the money they’ve earned by providing care for men, women, and children across the country.
According to the Centers for Medicare and Medicaid Services:
- 70% of claims are paid the first time they’re submitted
- 30% of claims are denied, lost, or ignored
- 60% of all denied, lost, or ignored claims are never resubmitted
- 18% of claims are never collected
There are reasons for this phenomenon. Insurance companies, patients, and other payers have become inundated by the system. Many patients can’t afford to pay for health insurance and can’t afford to visit a doctor – but they can’t afford not to come, either. Insurance companies and other payers, in turn, are prepared to take advantage of every loophole.
Physicians are looking to flip the narrative on this issue, and the right medical billing software can help them do it. You may choose practice management software that your staff handles in-house. You can also choose medical billing software that uses an external office with staff responsible for managing your claims and payments. This can make it easier for your front office staff to focus on the daily management of your office.
Whatever you choose, here are four ways that medical billing software can improve accounting (and the bottom line) for your practice:
First and foremost, medical billing software is an asset that organizes the workflow and financial management of your practice. It can manage appointments and schedule reminders. It can handle billing, coding, and claims. It can store and manage data, keeping you updated on HIPAA storage regulations. Indeed, this software can turn your current headache into a well-managed practice.
As wonderful as your staff can be, every human is capable of making mistakes, especially when it comes to billing. Staffers can miss potential denials, fudge numbers, or let a claim slip through the cracks. None of this is ever done intentionally, but it happens. Billing software can eliminate it.
When a claim isn’t paid the first time you send a bill, there’s a high chance your practice will never see that money. But, if your billing system can catch potential denials before claims are submitted, you can increase your first pass resolution rate, improve the speed of collections, and decrease work for your staff.
Another huge problem in terms of accounting and collection for many practices is underpayment. Practices are reimbursed different amounts by every payer, based on individual contracts and deals. Your billing system can monitor these contracts and flag when you’ve been underpaid.
The best reason to invest in a medical billing system? Analytics. Your system will provide easy-to-understand reports and data that can make accounting a breeze in the future. Simply make improvements in your billing and payment structure that match the analytics your system has generated. Over time, your process (and results) will get better and better.
Contact Raintree Systems to Learn More
At Raintree Systems, we provide exceptional software solutions to practices across the country. Contact our experienced team to see how we can help your medical practice.